Stellar (XLM) is showing signs of a potential bullish reversal after weeks of consolidation. Analysts highlight that a right shoulder of the head-and-shoulders pattern is forming.
Formation of Head-and-Shoulders Pattern
Currently, Stellar (XLM) is forming the right shoulder of a head-and-shoulders pattern, which analyst Ali Martinez considers a strong technical indicator. He pointed out a breakout level near $0.48, where crossing this resistance could drive prices toward $1.
Rally, Correction, and Accumulation Opportunities
In July, Stellar surged from $0.25 to $0.50, gaining over 100%. However, it later retreated to $0.426, raising concerns about the strength of this move. Corrections like this are perceived as normal in the market, with many experienced investors using these dips for accumulation. Additionally, it has been observed that previous corrections often fuel the next stage of upward movement.
Key Levels Define Short-Term Market Action
At present, XLM is trading near $0.393, down 17% from its recent peak around $0.46. Analysts emphasize the need to hold support around $0.38. If buyers can regain control and reclaim the $0.42–$0.46 range, it will signal a bullish reversal.
Thus, if Stellar manages to hold key support levels and confirm the head-and-shoulders pattern, it may pave the way for reaching the $1 target.
